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    Bajaj Finance: Should investors book profit after a dazzling rally?

    Though Bajaj Finance is better placed than other NBFCs to handle the COVID-19 crisis, it is facing significant risks

    Neha Dave
    July 22, 2020 / 10:22 AM IST
    Bajaj Finance: Should investors book profit after a dazzling rally?

    Five Star raised $234 million from Sequoia Capital and private equity giant KKR

    PRO Only Highlights
    -      Quarterly performance largely backed by improved realisations
    -      Medium-term triggers China plus and protectionist measures for tyre industry
    -      Valuations not inexpensive; but improved medium-term outlook

    Highlights

    -Loan growth nosedives, credit costs rise

    -Operating efficiency improves

    -Moratorium book declines but asset quality highly vulnerable

    -Significant risks to earnings exist

    -Relative and fundamental valuations stretched

    ------------------------

    Bajaj Finance (BFL) (CMP: Rs 3,293; Market capitalisation: Rs 198,435 crore) posted weak earnings in the first quarter of FY21 with its net profit declining 19 percent year-on-year (YoY) as loan growth plunged and provisions increased sharply. The muted performance is no surprise given that the business remained non-operational during the greater part

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